The invention discloses a sludge recycling utilization process and a system for realizing the process. The process comprises primary drying, secondary drying, carbonization, cooling and storage. According to the process, a biomass gasifier is utilized for heat supply, sludge treatment and biomass waste treatment are realized simultaneously, energy can be saved, environment can be protected, and according to the various discharge indexes, the dust emission concentration is less than 30 mg/m<3>, the SO2 discharge value is less than 20 mg/m<3>, the oxynitride discharge concentration is less than 250 mg/m<3>, and the Ringelmann black degree reaches level 1. According to the process and the system, biomass energy is taken as a main heat source for the system, and pyrolysis gas generated by a carbonizer in operation is taken as a supplementary heat source, so that heat is supplied to a primary dryer, a secondary dryer and the carbonizer; afterheat of tail gas of the carbonizer is recycled to the secondary dryer to be reused; tail gas of the primary dryer and the secondary dryer is subjected to dedusting through a cyclone dust collector and a water curtain spraying dust collector, and is subjected to desulfurization treatment to reach the standard to be discharged.